Target $9.82, page-52

The Quadpay business is currently the fastest growing BNPL company in the US. What’s more, it has a very high revenue yield due to the $1 fee it levies on the customer per instalment payment. Evidence to date would indicate that this fee is not negatively impacting customer acquisition rates. This 7% revenue yield (compared to Afterpay US’s 4.2%) provides Quadpay with additional optionality when it comes to the fee it charges merchants and provides additional fat to absorb higher credit costs typical with the early entry/high growth phase in a new market. On top of this Quadpay is very cheap compared to Afterpay US and Affirm. As a long term Afterpay shareholder, it made a lot of sense to me to move some Afterpay exposure to Zip once I had digested the information in Thursday’s update.